You bought ten (10) $1,000 face value bonds 3 years ago. The bonds are semi-annual bonds that pay a 4.5% coupon rate. You bought each bond for $982.50 and can now sell those bonds for $1,030.80 each. What is your total dollar return on this investment?

You bought ten (10) $1,000 face value bonds 3 years ago. The bonds are semi-annual bonds that pay a 4.5% coupon rate. You bought each bond for $982.50 and can now sell those bonds for $1,030.80 each. What is your total dollar return on this investment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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Question

You bought ten (10) $1,000 face value bonds 3 years ago. The bonds are semi-annual
bonds that pay a 4.5% coupon rate. You bought each bond for $982.50 and can now sell
those bonds for $1,030.80 each.
What is your total dollar return on this investment?

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